Hong Kong court rules cryptocurrencies as property

Hong Kong court rules cryptocurrencies as property

The Hong Kong government authority incentivizes the meaning of property in a broader form and embraces cryptos in its sphere. Unlike other judiciary approaches, the Hong Kong government seeks to approve cryptos as properties and not as just digital assets. This way, it is glorifying cryptos to the next level and gives them a remarkable name. If you are into Cryptocurrency, you may also consider using a reliable trading platform like the Qumas AI Official website.

Crypto initiated its roller coaster highly pledged ride to drive investors’ journey in trading with a whole new different dimension. It stepped into the market as a distinct stream entitled as a digital asset users can hold and trade. Investors. Investors were perplexed and found the entire crypto trading scenario a complex bunch of operations. Until Bitcoin shoots missiles into the clear blue sky making millionaires.

The surge of Bitcoin had driven many investors to settle for crypto trading and flaunting their digital wallets. Many countries have approved crypto trading and legalized its existence. While governments approach cryptocurrencies as digital assets, the Hong Kong government now calls them property. More than 20 crypto companies are willing to set milestones in Hong Kong and ace the crypto empire.

Several Hong Kong-based companies like ProDigital Future, have already started raising equity funds of $30 million. The platform is on the verge of investing in web3 startups focusing on crypto development. It is looking forward to raising a pool of $100 with a contribution from countries like Singapore, ChinaAustralis and Hong Kong.

The government’s contribution to opening up space for the crypto space by introducing bills for regulation and operating for cryptos is admirable. It proposes a license regulatory regime to grant easy access to crypto exchange portals as per the Securities and Future Commission.

Hong Kong accepting regional advancements by paving the way for crypto development 

Judge Lida Chan from the law firm Hogan Lovells said that crypto has property attributes. This indicates that crypto tokens have traits similar to real-world properties. The Hong Kong administrative court revealed that it is precisely important to follow the approach of other governmental jurisdictions that crypto is a property and is a trustworthy asset.

They further claim that “like other common law of jurisdiction, our definition of property is an inclusive one and intended to have a wide meaning”. Hogan Lovells also states that the government will dispense charity in the form of digital assets to insolvency practitioners of Hong Kong. This enforcement reveals crypto’s property enriched traits that are quite similar to assets like stocks. Hong Kong is intended to make a huge difference in the ever-flowing stream of cryptos and the web3-based digital world. Furthermore, its prolonged investments in web space and its significant adoption of blockchain technology will promote capitalization.

Let’s dive into the details of Hong Kong’s traumatic history in the field of cryptos 

The case dates back to the year 2016 when a crypto exchange company Gatecoin suffered a hack in its system. The platform lost $2 million worth of digital assets which was a traumatic scenario in the history of cryptos. And in the year 2019, the company received mandatory liquidation orders from the government of Hong Kong.

The Internal Revenue Services based in the United States, now acknowledge crypto as a property for federal tax purposes. This is a remarkable change in the history of cryptos where it is recognized as a property by one of the most advanced countries. The law enforcement assembled concerning property transactions is now applicable to crypto enfold transactions.

The property recognition of crypto is not just settled in the United States but has also taken a steep turn in mainland China. The China judiciary has also declared cryptocurrencies as property and not just digital assets. Besides that, in the year 2019, the Hangzhou government released an order stating Bitcoin is a digital property.

Hong Kong is boarding its plane to the web3 digital metaverse accelerating its global hub, China also does not miss the opportunity to take the board. It seeks partnerships and birds on the crypto-regulated firms in Hong Kong. These events take place efficiently despite the Crypto ban in mainland China

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